Jaffe: Investors Must Put the Past Behind Them

9/20/2013 10:53AM

The collapse of Lehman Brothers is a situation that a lot of investors can learn from when it comes to risk and losses, but all investors need to put the past, good or bad, behind them to focus on how to survive and profit from what’s next. Chuck Jaffe joins MoneyBeat.

This transcript has been automatically generated and may not be 100% accurate.

... five years after the collapse of Lehman Brothers and some investors still will do the five stages of grief and MarketWatch's Chuck Jaffe is here with the message it ... was basically I'll ... get to that that stage move on it's been five years ... but ... the more alas we've been saying your child ... I mean the problem here is that there are still standing among people who were frozen by it and what they really frozen by ... deserve all the emotions mean let's be perfectly honest people feel lost more acutely than the fuel game in ... the new talk to people and they can tell you not know why portfolio PG this or something along those lines they can't tell you ... that ... job when I started here's a little that I had in years when returns were ... so they internalize losses and then the bone for anything that supports ... you know how much it is painted a one to go to again something about the last five years ... you are looking for reasons to get out we had the flash crash and had ... Greece are you now have Syria he had no physical clip for you had ... the sequester and in any number of other things tapering not tapering was abandoning quantitative easing ... role is looking for something ... and ... yet potentially have to get over that yet to get where you're saying ... I can go forward given to him ... I'm not entirely come from now clearly this piece you interviewed a couple and it was it was an interesting split among them ... while he was the one who was managing the bottom line ... and ... he ... he's more aggressive so they can just lose fifty percent like the Dow Jones did a lot about two-thirds from the peak to trough ... and ... she ... basically saw them and they're now in their fifties they were in their late forties five years ago ... she saw everything going away to light all we've discovered for gold tumbling gym ages to reach their goal because they had ... returns that were bigger than they should have a right to expect over the last ... fifteen or twenty years leading up to the US ... so the return history is not terrible ... that's not what she sees what she sees is I was this close to Michael ... and no I don't think I'll ever get there ... worse yet ... every time he wants to invest ... she is like no you can't do that was reduced to lose more she is going really over it ... and it's a real disconnect in a real problem and ... by the way there's a lot of couples like that and ... he feels ... that ... if she would've allowed him to be more aggressive or simply to stay fully invested ... the money might come back to where he wasn't the piece he'd be closer than he is now ... what is that people don't trust the stock market in the Dow hit a new record this week it's been a record ... they're a lot of people in for President Reagan reasons don't trust was going on in the Stock Market When EC those people ... you have to get over it to some extent did don't have to say on one of the uh hundred percent stocks and let go while ... what you have to be able to find names that you believe are going to be your regardless of what happens with the economy ... I don't make stock picks but think about being consumer companies ... then you remember when you weren't kidding ... and that your kids now know and you respect your grandchildren are going to drink DeSoto or use that product not anything it's trends in our transitory or what have ... we seen lots and lots of technologies to me when I was to get me was that newspaper stocks a great idea ... and yet not many newspaper stocks right now are popular for its own ... wind up in a situation where you're looking for those things ... that you're going to be able to invest in the business and not worry about Wall Street ... just say you know what ... this is what I would wanna call ... what what I wanted do with my money what kind of business what I want to own ... and soon everything else out of the hacking because ... we can all ... say in one example cry right well you know they're all out to get us in their old tricks in their old whatever ... but we still have to go in and deal with that were never going to generate the returns and thus we would like my Sears her owners put up with that for the rest of our day yet By Chuck Jaffe good stuff thank you very